CLS Holdings
USA, Inc. Reports Momentous September Results, Starting Second
Fiscal Quarter with Record Revenue
LAS VEGAS, NV
October 13, 2020 -- InvestorsHub NewsWire -- CLS Holdings USA,
Inc. (OTCQB: CLSH) (CSE: CLSH), the ''Company'' or ''CLS'', a diversified
cannabis company operating as Cannabis Life Sciences, today
announced the financial and operational results for its Nevada
wholly owned
subsidiaries for the month of September 2020 with net revenues of
$1.7M and Gross Margin of 50.9%. These results represent an
increase of 70.3% in net revenue over September 2019, and an
increase of 21.2% over the previous highest revenue month in
August
2020.
CLS Nevada
September 2020 Financial and Operational Highlights
-
September 2020 net
revenue increased by 70.3% over September 2019, and by 21.2% over
August 2020, the previous highest revenue month for the
Company.
-
Gross margin
remained steady, with slight growth from 50.4% in
August 2020 to 50.9% in September 2020, and an increase of 4% over
September 2019
-
CLS' wholesale
manufacturing subsidiary successfully completed its rebrand in September,
generating increased interest in the brand
with
its newly
refined design and focus on sustainability.
A Third
Consecutive Record Month
Increased sales at
both CLS Nevada entities contributed to the Company's third
consecutive record monthly net revenue of $1,704,459. This result
represents a 70.3% increase over September 2019, and an
increase of 139% over September 2018. Traffic at the company's
Nevada retail subsidiary, Oasis Cannabis, substantially increased
throughout the month; the total number of transactions processed at
Oasis increased by over 3,500 from August 2020 to September
2020, including in-store, curbside, and delivery transactions.
Company President and COO Andrew Glashow noted, "While our hours at
Oasis are still reduced from our previous 24 hour model, the
continued expansion of delivery and curbside services has allowed us to
sustain the growth we saw over the summer in an incredible way.
September also saw many new additions to our product offerings as
more new vendors moved into the Nevada market and customers sought
out new options. While we believe our City Trees
products to be some of the safest and cleanest on the market, we
always want to provide the best selection we can at the retail
level as well, and our customers have taken notice."
Chairman and CEO,
Jeffrey Binder, remarked
that "Our Nevada
team is exceeding the market results in western states as a whole.
The concentrate category continues to expand putting us in an
excellent position with our new state-of-the-art manufacturing
facility to grow the City Trees Brand. The
near-term
effects of the slowdown earlier in the year are well behind us, and
we're pushing forward in a sustainable, thoughtful way."
Increasing
Industry Leadership
CLS and its Nevada
subsidiaries are increasingly leading the conversation around
cannabis in
Nevada, despite having only a single retail location and extraction
facility in the region. The Company's wholesale
manufacturing division, City Trees, successfully completed and
launched its brand redesign in September, achieving early
recognition for its aesthetic improvements
and sustainability-minded ethos. CLS' President and COO, Andrew
Glashow, also presented at the
2020 Canaccord Genuity Virtual Cannabis Symposium
in September - the
first of many
features for the Company in the second quarter. September marked
another successful month for CLS as it continues
its
focus on innovation
in Nevada and maintains an eye toward regional
growth.
About CLS Holdings
USA, Inc.
CLS Holdings USA,
Inc. (CLSH) is a diversified cannabis company that acts as an
integrated cannabis producer and retailer through its Oasis
Cannabis subsidiaries in Nevada and plans to expand to other
states. CLS stands for "Cannabis Life Sciences," in
recognition of the Company's patented proprietary method of
extracting various cannabinoids from the marijuana plant and
converting them into products with a higher level of quality and
consistency. The Company's business model includes licensing operations,
processing operations, processing facilities, sale of products,
brand creation and consulting services.
http://www.clsholdingsinc.com.
Twitter:
@CLSHoldingsUSA
Oasis Cannabis has
operated a cannabis dispensary in the Las Vegas market since dispensaries
first opened in Nevada in 2015 and has been recognized as one of
the top marijuana retailers in the state. Its location within
walking distance to the Las Vegas Strip and Downtown Las Vegas in
combination with its delivery service to residents allows it to
efficiently serve both locals and tourists in the Las Vegas area.
In February 2019, it was named "Best Dispensary for Pot Pros" by
Desert Companion Magazine. In August 2017, the company commenced
wholesale offerings of cannabis in Nevada with the launch of
its City Trees brand of cannabis concentrates and cannabis-infused
products.
http://oasiscannabis.com
Photo: Oasis
Cannabis Dispensary. Las Vegas, NV
Founded in 2017,
City Trees is a Nevada-based cannabis cultivation, production and distribution company.
Offering a wide variety of products with consistent results, City
Trees products are available in numerous dispensaries throughout
the state of Nevada.
https://citytrees.com
Photo: City Trees
production facility, Las Vegas, NV
Forward
Looking Statements
This press release
contains certain ''forward-looking information'' within the meaning
of applicable Canadian securities legislation and ''forward-looking
statements'' as that term is defined in the Private
Securities
Litigation Reform Act of 1995 (collectively, the ''forward-looking
statements''). These statements relate to, among other things, the
future impact of the COVID-19 virus on our business, the future
results of our initiatives to retain our employees
and
strengthen our relationships with our customers and community
during the pandemic, the future effect of our initiatives to expand
market share and achieve growth during and following the pandemic,
future results of operations and financial performance,
anticipated future
events, and the effectiveness of our business practices during the
pandemic. The continued spread of COVID-19 could have, and in some
cases already has had, an adverse impact on our business,
operations and financial results, including through disruptions in our
cultivation and processing activities, supply chains and sales
channels, and retail dispensary operations as well as a
deterioration of general economic conditions including a possible
national or global recession. Due to the speed with which the COVID-19
situation is developing and the uncertainty of its magnitude,
outcome and duration, it is not possible to estimate its impact on
our business, operations or financial results; however, the impact
could be material. In some cases, you can identify forward looking
statements by terminology such as ''may,'' ''might,'' ''will,''
''should,'' ''intends,'' ''expects,'' ''plans,'' ''goals,''
''projects,'' ''anticipates,'' ''believes,'' ''estimates,''
''predicts,'' ''potential,'' or ''continue'' or the negative of these
terms or other comparable terminology. These forward-looking
statements are only predictions, are uncertain and involve
substantial known and unknown risks, uncertainties and other
factors which may cause our actual results, levels of activity or
performance to be materially different from any future results,
levels of activity or performance expressed or implied by these
forward-looking statements. We cannot guarantee future
results, levels of activity or performance. You
should not
place undue reliance on these forward-looking statements, which
speak only as of the date that they were made. These cautionary
statements should be considered together with any written or oral
forward-looking statements that we may issue in the
future. Except as
required by applicable law, we do not intend to update any of the
forward-looking statements to conform these statements to reflect
actual results, later events or circumstances or to reflect
the occurrence of unanticipated events. See CLS Holdings USA filings with the
SEC and on its SEDAR profile at www.sedar.com for additional
details.
Contact
Information:
Corporate:
Chairman and
CEO
Jeff
Binder
President and
COO
Andrew
Glashow
888-438-9132
Investor
Relations:
investors@clsholdingsinc.com
Source: CLS Holdings
USA, Inc.
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